TOKYO (Reuters) – Bank of Japan needs to unveil new strategy to hit 2% inflation target at this month’s policy review, board member Goushi Kataoka said, warning to the slowdown in growth from the COVID-19 pandemic price expansion.
Kataoka said halting the pandemic is likely to delay Japan ‘s economic recovery and put pressure on inflation prospects, which have been falling since late 2019.
“Seeing a steady increase in disease would adversely affect the yield gap and inflation expectations. This, in turn, will lead to an increase in prices, ”Kataoka said in a speech to an online meeting with business leaders on Wednesday.
The BOJ plans to review its policy tools in March to make them more resilient and flexible to weather than has been a long battle to boost growth and target prices. his accomplishment. Governor Haruhiko Kuroda has stressed that the review will not lead to a review of its stimulus program.
“The BOJ needs to review and explain its policy strategy going forward, taking into account how the path towards meeting the price target has been unsuccessful. clear, ”Kataoka said of the review of policy tools.
Kataoka, seen as the most dovish policymaker in the BOJ’s nine-member board, has been unsuccessfully lobbying for cutting interest rates and strengthening BOJ’s commitment to take stronger measures to curb inflation firing.
He reiterated his calls that the BOJ would more strongly promise to keep rates low for a long time.
“It is now difficult to expect inflation to vigorously move towards our 2% target,” Kataoka said.
Reciting with Leika Kihara; Edited by Chang-Ran Kim and Lincoln Feast.